Colombia Consumer Confidence

Colombia: Consumer confidence improves in January

February 12, 2013

The Fedesarrollo index of consumer sentiment improved in January, rising to 23.1 points from 21.5 points in December. As a result, the index remains well above the 0-point threshold that separates pessimistic from optimistic territory. That said, despite the improvement, at the current level the index is now 9.6 points below the level observed in the same month last year.

The monthly increase in consumer sentiment reflected an improvement in both the present and forward-looking sub-categories that compose the index. In particular, economic conditions recorded the largest gain, rising from 14.6 points in December to 16.7 points. Meanwhile, the consumer expectations sub-index rose a milder 1.4 points and reached 27.4 points.

Market analysts were taken by surprise when the Board of Directors of Colombia’s Central Bank, BanRep, cut the benchmark interest rate by 25 basis points to 4.75% on 24 November, continuing a policy of easing amid weaker-than-expected economic activity.